The  Debt  of  the 
Board  of  Foreign  Missions 

of  the 

Methodist  Episcopal  Church 


As  of  October  31,  1924 


CORRESPONDING  SECRETARIES 
RALPH  E.  DIFFENDORFER 
JOHN  R.  EDWARDS 

SECRETARY — COUNSEL 
FRANK  MASON  NORTH 


Board  of  Foreign  Missions 

Of  ttc  METHODIST  EPISCOPAL  CHURCH 

150  Fiftk  Avenue 
NEW  YORK  CITY 


CABLE  ADDRESS.  MISSIONS  PHONE,  CHELSEA  213Q 


PRESIDENT 

BISHOP  LUTHER  B,  WILSON 

VICE-PRESIDENT 
FRANK  A.  HORNE 
TREASURER 
MORRIS  W.  EHNES 


To  THE  Members  of  the  Methodist  Episcopal  Church  : 

At  the  Annual  Meeting  of  the  Board  of  Foreign  Missions,  held 
in  Pittsburgh,  Penna.,  November  17-19,  1924,  the  Corresponding  Sec¬ 
retaries  and  Treasurer  presented  the  financial  situation  of  the  Board 
as  they  found  it  in  the  fiscal  year  just  closed.  The  Board  directed, 
upon  the  recommendation  of  the  Secretaries,  that  these  facts  be  laid 
before  the  Church  in  a  frank  and  adequate  manner. 

The  pages  which  follow,  all  of  which  are  reprinted  from  the  last 
annual  reports  of  the  Secretaries  and  Treasurer,  tell  the  story.  One  of 
the  guests  and  speakers  at  the  Annual  Meeting  of  the  Board  said  that 
^‘the  Board  of  Foreign  Missions  faces  the  greatest  crisis  in  its  history; 
shall  we  not  say  it  confronts  a  catastrophe?”  Even  these  strong  words 
cannot  describe  the  heartbreak  that  went  around  the  world  when  the 
cable  messages  told  the  mission  fields  everywhere  of  the  reduced  appro¬ 
priations  and  the  added  debt. 

We  ask  you  to  read  and  study  these  statements  carefully.  If  there 
is  any  point  which  you  do  not  understand,  please  write  the  Secretaries 
for  any  explanations  or  additional  information  desired.  We  will  also 
make  it  possible  for  you  to  cooperate  with  us  in  an  endeavor  to  bring 
the  Church  to  a  sympathetic  understanding  of  this  situation  by  offering 
the  following : 

(1)  Additional  copies  of  this  printed  statement  may  be  had  upon 
request. 

(2)  A  more  detailed  and  a  complete  statement  will  be  found  in 
the  Journal  of  the  Annual  Meeting.  Single  copies  of  this  will  be  sent 
upon  request.  This  contains  the  minutes,  the  Secretaries’  and  Treas¬ 
urer’s  complete  reports,  actions  of  the  Board,  resolutions,  and  appro¬ 
priations.  Please  ask  for  the  “Journal  of  the  Annual  Meeting,  1924.” 

We  appeal  for  your  continued  prayers  and  support  for  the  new 
and  greater  day  for  our  Church  as  an  agency  for  the  spread  of  the 
Gospel  of  Jesus  throughout  the  world. 

Fraternally  yours, 

Ralph  E.  Diffendorfer, 

John  R.  Edwards, 

Corresponding  Secretaries. 
Morris  W.  Ehnes, 

Treasurer, 


THE  DEBT  OF  THE  BOARD  OF  FOREIGN  MISSIONS 


On  October  31,  1923,  the  total  debt  of  the  Board  was  $2,247,- 
951.21.  The  fixing  of  this  amount  was  the  result  of  long  and  careful 
deliberation  on  the  part  of  the  Finance  Committee  of  the  Board,  and 
after  much  discussion  was  approved  by  the  Board  itself.  This  figure 
was  submitted  to  a  special  committee  of  the  General  Conference  on  the 
debt,  which  committee  changed  the  Board’s  figure  by  transferring  an 
item  to  quick  assets  which  the  Board  had  considered  a  slow  asset,  and 
finally  set  the  debt  figure  at  $2,003,056.00. 

There  have  been  during  the  year  certain  routine  adjustments  and 
certain  credits  like  the  watch  campaign  and  payments  by  the  Woman’s 
Foreign  Missionary  Society  on  the  Interchurch  World  Movement 
underwriting,  and  more  recently  the  Finance  Committee  of  the  Board 
transferred  an  item,  formerly  considered  only  a  resource,  to  an  asset. 
Then  there  must  be  added  the  current  work  deficit  of  the  present  year, 
and  additional  loss  in  exchange.  These  additions  and  subtractions  give 
a  total  figure  for  the  Board’s  debt  on  the  General  Fund  account  as 
$2,972,523.70.  To  this  amount  there  must  be  added  advances  made 
many  years  ago  from  the  Permanent  and  Annuity  Funds  as  fully 
explained  in  the  Treasurer’s  Report.  The  advances  from  the  Per¬ 
manent  Funds  are  $102,739.24;  and  the  advances  from  the  Annuity 
Funds,  less  the  amount  of  designated  annuities,  are  $26,067.33.  When 
these  two  figures  are  added  to  the  debt  on  the  General  Fund  account, 
we  have  a  total  debt  of  $3,101,330.27.  This  means  that  the  Board 
now  has  an  actual  debt  almost  as  large  as  its  income  for  1924.  It 
must  be  remembered,  however,  that  in  a  hundred  years  of  financial 
dealings  with  the  banks  and  trust  companies  of  the  City  of  New  York 
none  of  them  has  ever  lost  a  cent  of  either  interest  or  principal  as  a 
result  of  dealings  with  the  Board  of  Foreign  Missions.  This  history 
and  the  investment  of  twenty  millions  of  dollars  in  property  abroad, 
together  with  the  integrity  and  goodwill  of  the  Methodist  Episcopal 
Church  produces  a  Gibraltar-like  credit  in  a  going  concern. 

CENTENARY  EXPANSION 

Since  the  Centenary  period  is  closed,  it  will  be  well  for  the  Board 
to  consider  the  trend  of  its  financial  affairs  in  the  last  six  years.  At 
its  meeting  in  November,  1918,  the  Board  reported  $1,967,552.47  dis¬ 
bursements  to  the  Mission  Fields.  By  that  time  the  Centenary  Promo¬ 
tional  Campaign  was  in  full  swing.  Some  of  the  churches  had  already 
taken  subscriptions,  and  during  the  first  six  months  of  1919,  the  five- 
year  subscription  had  been  made  and  reported  to  the  General  Con- 

3 


ference  at  Des  Moines  in  1920,  as  $115,003,375.  By  the  end  of  the 
fiscal  year,  October  31,  1919,  the  Board  felt  the  effects  of  the  increased 
giving,  the  income  being  more  than  twice  that  of  the  preceding  year. 
The  Board  then  inaugurated  its  enlarged  program  throughout  the 
world,  a  program  which  was  again  increased  in  1920,  as  the  disburse¬ 
ments  figure  will  show,  when  we  had  our  first  full  year  of  Centenary 
income.  This  enlarged  program  was  anticipated  by  the  Church  and 
was  necessary  in  order  to  keep  faith  with  the  purposes  and  ideals 
of  the  Centenary  Movement.  It  was  expected  that  expansion  would 
be  both  in  pei*manent  investments  in  property  and  equipment,  and  also 
in  working  force,  both  of  missionaries  and  of  nationals.  It  was 
definitely  understood  by  our  leaders  at  that  time  that  at  the  end  of 
the  Centenary  period,  the  Board’s  current  work  program  should  not 
be  more  than  double  the  pre-Centenary  period,  even  though  the  re¬ 
ported  Centenary  subscription  indicated  an  income  four  times  that 
which  the  Board  had  received  in  pre-Centenary  years.  Each  year  the 
Board  has  made  its  appropriations  with  this  fact  in  mind.  The  dis¬ 
bursements  last  year  for  current  work  purposes  were  approximately 
$50,000  more  than  double  the  disbursements  of  1918  for  the  same 
purposes.  Considering  the  increased  costs  of  all  items  entering  into 
this  account  it  will  be  seen  that  this  policy  has  been  carried  out  with 
just  faithfulness. 

The  presentation  of  the  matter  of  the  debt  in  further  detail  follows 
under  three  headings : 

1.  Causes  of  the  Board’s  Debt. 

2.  How  the  Board’s  Debt  is  Financed. 

3.  Supplemental  Information. 

CAUSES  OF  THE  BOARD’S  DEBT 

The  obligation  of  maintaining  this  enlarged  missionary  program 
is  the  background  in  which  the  Board’s  debt  must  be  considered.  Out 
of  these  increased  funds,  in  addition  to  the  disbursements  to  the  field, 
there  were  a  number  of  unusual  expenditures  all  of  them  authorized 
by  the  proper  agencies.  It  is  well  now  that  these  should  be  reviewed. 

I  Pre-Centenary  Expense 

The  Board  had  incurred  a  pre-Centenary  expense  of  surveys, 
official  meetings,  education  and  promotion  leading  up  to  the  five-year 
subscription.  This  item  is  known  in  the  Treasurer’s  Report  as  ‘‘For¬ 
eign  Board  Centenary  Expense.”  The  amount  is  $515,233.08.  It  is 
fully  accounted  for  in  the  Treasurer’s  report  of  October  31,  1919,  and 
shows  that  this  amount  represents  the  costs  of  deputations,  cultivation 
of  the  foreign  fields ;  administration ;  equipment  and  rent ;  the  expenses 
of  missionaries  engaged  in  Centenary  activity;  publicity,  literature, 
and  other  items.  It  represents  that  part  of  the  pre-Centenary  expense 
which  belonged  exclusively  to  the  Board  of  Foreign  Missions, 

This  total  was  paid  in  full  in  1919, 

4 


2  The  Columbus  Celebration 

The  Columbus  Celebration  was  held  June  20  to  July  13, 
1919,  as  the  official  celebration  of  the  one  hundredth  anniversary  of 
the  organization  of  Methodist  Missions.  In  this  enterprise,  the  Meth¬ 
odist  Episcopal  Church,  South,  joined  the  Committee  representing  the 
Board  of  Foreign  Missions  and  the  Board  of  Home  Missions  and 
Church  Extension.  It  was  expected  that  the  gate  receipts  and  other 
income  from  the  Columbus  Celebration  would  pay  its  expenses.  When 
the  final  reports  were  made,  however,  it  was  found  that  this  Board’s 
share  of  the  deficit  of  the  Columbus  Celebration  was  $367^276.39. 

Part  of  this  was  paid  in  1921  and  the  balance  in  1922. 

3  The  Interchurch  World  Movement 

In  the  meantime  the  Interchurch  World  Movement  was 
launched.  Our  Board  at  its  Annual  Meeting  on  December  8,  1919, 
authorized  the  Executive  Committee  to  make  arrangements  for  under¬ 
writing  the  Interchurch  World  Movement  with  the  provision  that 
‘'such  sum  shall  not  exceed  the  total  amount  of  $750,000.”  On  the 
basis  of  what  seemed  to  the  Executive  Committee  a  sufficient  guar¬ 
antee  on  the  part  of  the  Woman’s  Foreign  Missionary  Society,  and 
in  view  of  the  fact  that  the  Board  is  required  by  the  General  Con¬ 
ference  to  pass  on  appropriations  of  the  Society,  the  Executive  Com¬ 
mittee  on  March  31,  1920,  authorized  the  further  underwriting  of  the 
Interchurch  World  Movement  on  behalf  of  the  Woman’s  Foreign  Mis¬ 
sionary  Society,  of  $300,000. 

A  payment  of  $100,000  was  made  on  this  account  in  1922  and 
$650,000  was  paid  in  1923.  The  Woman’s'  Foreign  Missionary  Society 
has  paid  $93,488.80  of  its  underwriting  and  hopes  to  pay  the  balance 
in  1925. 


4  Loss  in  Exchange 

The  next  item  deals  with  exchange.  During  and  after  the 
war  in  certain  parts  of  the  world,  especially  in  China,  exchange  turned 
against  us.  The  mission  treasurer  in  China,  in  normal  times,  could 
exchange  $100  in  gold  for  $200  Mexican,  the  silver  standard  in  Chinese 
currency  and  the  average  rate  would  probably  be  higher  than  two  to 
one.  On  this  basis  the  finance  committees  and  the  missionaries  plan 
expenditures.  When  the  exchange  begins  to  drop,  he  buys  less  Chinese 
currency.  In  China,  exchange  dropped  during  and  after  the  war  until 
$100  gold  bought  $100  Mexican  and  once  only  eighty-five  Mexi¬ 
can  dollars.  For  the  missionary  treasurer,  this  is  the  same  experi¬ 
ence  as  if  any  man  of  this  Board  deposited  an  amount  in  the  bank 
and  got  an  entry  of  one-half  or  less  than  one-half  of  the  amount.  When 
this  situation  is  applied  not  only  to  salaries,  but  to  all  building  opera¬ 
tions  and  to  all  contracts  made  for  current  expenses  and  equipment, 
the  Board  was  faced  with  the  necessity  of  either  making  up  the  differ¬ 
ences  from  funds  in  New  York  or  asking  the  fields,  including  the 

5 


missionaries  themselves,  to  carry  this  loss.  The  Board  decided  to 
advance  the  difference,  with  the  result  indicated  in  the  Treasurer's 
Report.  This  was  the  procedure  followed  by  other  Mission  Boards 
and  international  business  concerns. 

Payments  were  made  on  this  account  in  1919,  1920,  1922  and  1924. 
A  more  detailed  statement  is  found  on  page  15. 

5  Benson  Springs  Inn 

During  the  Centenary  period  there  came  into  the  possession 
of  the  Board  certain  properties  in  the  United  States,  namely,  Benson 
Springs  Inn,  in  Florida,  Mountain  Lake  Park  in  Maryland,  Attleboro 
Springs  in  Massachusetts,  and  Wallace  Lodge  in  New  York.  For  our 
purpose  here  we  need  to  record  that  one  of  these  properties  has  been 
sold,  Benson  Springs  Inn,  which  was  held  jointly  with  the  Board  of 
Missions  of  the  Methodist  Episcopal  Church,  South,  at  a  loss  of  $13,- 
946.20. 

This  Benson  Springs  Inn  item  was  paid  in  1923. 

6  Centenary  Cultivation 

During  all  these  years  Centenary  income  was  carrying  the 
general  promotional  expenses.  The  promotional  expenses  of  the  Cen¬ 
tenary  from  the  beginning  down  to  June  i,  1919,  the  Board  of  Foreign 
Missions  and  the  Board  of  Home  Missions  and  Church  Extension  paid 
jointly.  Our  Board's  share,  $1,966,439.86,  had  to  be  carried  as  bor¬ 
rowings  from  the  banks  until  Centenary  moneys  had  been  received. 

In  the  year  1919,  this  obligation  was  cleared  off  out  of  the  receipts. 

After  June  i,  1919,  upon  the  organization  of  the  Centenary  Con¬ 
servation  Committee,  the  expenses  of  this  promotional  organization 
were  taken  out  of  the  Centenary  income  before  the  disbursements 
were  made  to  the  various  Boards.  The  total  amount  of  this  promo¬ 
tional  expense  up  to  May  31,  1920,  was  $1,698,586.60. 

By  authorization  of  the  General  Conference  held  in  Des  Moines 
in  May,  1920,  the  Council  of  Boards  of  Benevolence  was  created, 
with  its  promotional  agency  known  as  the  Committee  on  Conserva¬ 
tion  and  Advance.  The  expenses  of  the  Council  of  Boards  and  its 
various  committees  were  deducted  from  Centenary  income  before  dis¬ 
bursements  were  made  to  the  Boards.  During  the  last  quadrennium 
these  expenses  amounted  to  $3,736,249.90.  The  income  of  our  Board 
was  reduced  by  47.86  per  cent  of  these  amounts,  which  was  its  pro¬ 
portionate  share. 

These  promotional  expenses  up  to  and  including  the  Centenary 
period  were  a  factor  in  the  total  distribution  of  Centenary  funds,  and 
constitute  what  has  usually  been  called  “Overhead  Expenses,"  the 
cause  of  a  good  deal  of  discussion  and  misapprehension  in  the  Church. 
There  are  some  who  say  that  if  this  money  had  not  been  spent,  we 
would  have  had  it  available  for  work.  Others  say  that  if  it  had  not 
been  spent,  we  would  not  have  received  as  much  from  the  churches. 
These  two  “ifs"  rather  neutralize  each  other. 

6 


7  Interest 

It  will  be  noted  also  that  during  the  five  years,  1919-1924,  the 
Board  paid  out  a  total  of  $640,345.51  in  interest  charges.  The  larger 
part  of  this  is  due  to  the  Board’s  heavy  debt  obligations.  Some  of  it 
is  due  to  the  recurring  interest  charges  on  account  of  the  failure  of  the 
churches  to  send  their  money  regularly,  necessitating  large  borrowings 
from  the  banks  to  pay  current  bills  and  appropriation  items. 

All  interest  charges  have  been  paid  annually. 

8  War  Emergency  and  Reconstruction 

It  will  be  recalled  that  a  War  Emergency  and  Reconstruc¬ 
tion  appeal  of  $5,000,000  was  added  to  the  total  regular  askings  and 
made  a  part  of  Centenary  financial  goals.  One  half  of  this  asking  was 
for  the  Board  of  Foreign  Missions,  and  in  addition  there  was  an  item 
of  $400,000  in  the  regular  program  for  Europe.  These  askings  were 
made  in  order  that  our  Church  might  fulfill  its  obligation  for  these 
needs  during  and  after  the  war.  This  appeal  was  a  very  important 
factor  in  the  Centenary  subscription,  and  the  Board  was  quick  to  do 
its  duty  in  those  terrible  days  when  the  need  was  so  acute  in  Europe. 
We  interpreted  “emergency”  as  having  to  do  with  providing  food, 
clothing,  shelter,  and  medical  supplies;  and  “reconstruction”  as  in¬ 
cluding  the  more  permanent  items  of  property,  equipment  and  working 
force  that  were  sure  to  arise  during  the  days  following  the  war. 

Approximately  two  and  one-half  million  dollars  were  sent  to 
Europe  on  this  account,  with  the  expectation  that  at  the  close  of  1920 
there  would  be  sufficient  income  to  carry  the  Board’s  regular  appro¬ 
priation  and  to  pay  off  these  European  advances.  When,  however,  we 
came  to  the  close  of  1920  there  was  not  enough  to  pay  off  all  of 
these  war  emergencies  and  reconstruction  advances.  The  Board  was 
able  to  charge  $1,153,656.81  in  1920  to  the  appropriation  for  war 
emergency  and  reconstruction ;  which  together  with  the  amount 
charged  in  1919,  namely,  $186,448.17,  make  a  total  of  $1,340,104.98 
charged  to  the  appropriation  of  these  two  years.  These  payments  rep¬ 
resent  all  that  was  disbursed  under  the  head  of  Emergencies  as 
described  above,  except  a  balance  of  $83,366.35. 

This  balance  is  carried  as  a  part  of  our  Loans  and  Advances  to 
the  Fields. 

9  Loans  and  Advances  to  the  Field 

Another  item  entering  into  the  obligations  of  the  Board  is  the 
Loans  and  Advances  to  the  Field.  Many  years  before  the  Centenary, 
it  was  the  custom  of  the  Board  to  loan  money  to  the  field  for  property 
purchases.  Some  of  our  most  substantial  properties  on  the  field  were 
financed  in  this  way. 

During  the  days  of  the  Centenary  promotion,  when  it  was  apparent 
that  the  income  of  the  Board  would  be  increased,  additional  urgent 
property  projects  were  financed  by  loans,  the  same  to  be  made  a 

7 


first  charge  against  Centenary  income.  Practically  all  of  these  pre- 
Centenary  and  early  Centenary  loans  were  paid  from  early  Centenary 
income.  The  few  remaining,  plus  the  amount  of  war  emergency  and 
reconstruction  property  advances,  which  could  not  be  charged  against 
appropriations  now  stand  as  loans  from  the  General  Treasury  totaling 
$1,326,584.12,  and  are  one  of  the  chief  causes  of  our  present  debt. 

All  of  the  items  were  found  in  the  surveys  and  were  acknowledged 
parts  of  the  Centenary  program.  They  came  up  as  individual  items  on 
the  urgent  presentation  of  the  fields.  They  were  carefully  scrutinized 
by  the  Secretaries  and  placed  before  the  Executive  Committee  for 
their  study  and  action.  In  many  cases,  they  were  referred  for  further 
scrutiny  to  the  Board’s  Finance  Committee  before  any  advances  were 
made. 

In  addition,  the  Board  created  a  special  Commission  on  War 
Emergency  and  Reconstruction  in  Europe  before  whom  these  matters 
as  to  policy  and  fact  passed  in  review.  For  a  statement  of  these  loans 
and  advances  see  page  16. 

In  presenting  this  situation,  we  are  not  passing  judgment  on 
former  policies  of  the  Board.  There  are  strong  and  influential  leaders 
of  the  Church  who  defended  every  one  of  these  items.  There  are 
others  who  looked  upon  some  of  them  as  mistaken  policies.  Wartime 
psychology,  confusion  of  counsel,  and  even  the  great  victories  which 
have  been  attained,  may  have  been  determining  factors  in  policies  and 
programs  which  now  may  be  looked  upon  differently.  In  passing  from 
the  great  and  heroic  Centenary  days  into  the  new  program  of  World 
Service,  it  is  our  purpose  as  well  as  our  duty  to  profit  by  these  former 
experiences.  Our  steady  purpose  is  to  consider  the  past  as  an  experi¬ 
ence  for  the  future. 

10  Current  Work  Deficit,  1924 

In  order  fo  explain  more  fully  the-  item  of  current  work  deficit 
referred  to  on  page  3  of  this  statement,  there  is  included  here  certain 
paragraphs  from  the  report  of  the  Treasurer. 

a.  Receipts 

The  total  receipts  for  the  fiscal  year  were  $3,152,962.70.  Com¬ 
pared  with  the  previous  fiscal  year,  $5,350,473.52,  there  is  a  decrease 
of  41.07  per  cent. 

Our  share  of  the  Centenary  and  World  Service  receipts  was  $2,- 
^30,835.32.  Compared  with  the  Centenary  receipts  of  the  last  fiscal 
year,  $4,596,919.20,  there  is  a  decrease  of  42.77  per  cent.  The  differ¬ 
ence  between  these  figures  and  the  amount  reported  as  disbursed  by 
the  Chicago  office  is  due  to  amounts  paid  by  them  which  were  placed 
in  our  Permanent  Fund. 

It  is  interesting  to  note  that  our  income  in  1917-1918,  the  last 
pre-Centenary  year,  was  $2,333,737.86,  and  that  the  income  for  this 
fiscal  year  is  only  $819,224.84  in  excess  of  the  income  in  1917-1918. 
On  the  basis  of  the  present  purchasing  power  of  the  American  dollar 

8 


compared  with  that  in  1917,  the  value  of  the  Board’s  income  is  con¬ 
siderably  less.  When  it  is  realized  how  the  Board’s  work  has  in¬ 

creased  overseas,  this  year’s  income  as  a  basis  for  appropriations  for 
next  year  will  spell  a  heartbreak  around  the  world. 

b.  Disbursements 

The  total  amount  of  disbursements  for  the  year  just  ended  is 

$4,400,794.43.  It  will  be  recalled  that  the  income  last  year  was  $5,- 

350,473.52  and  that  the  Board  technically  had  a  right  to  appropriate 
that  much  money.  However  it  was  known  that  some  of  that  income 
would  not  be  repeated  this  year,  and,  furthermore  the  Board  wished 
so  to  arrange  its  appropriations  that  in  case  of  decreased  income  the 
Board  could  close  this  fiscal  year  without  additional  debt.  The  appro¬ 
priations  therefore  were  only  $4,950,473.  Furthermore,  within  this 
appropriation  there  was  an  item  of  $120,473  conditioned  on  the  amount 
being  received  and  an  item  of  $500,000  for  Board’s  Obligations  and 
Interest.  Nothing  was  disbursed  on  these  two  items,  except  the 
interest.  By  this  process,  and  by  other  savings,  the  total  disburse¬ 
ments  were  kept  down  to  the  figure  named.  This  would  have  pro¬ 
vided  for  a  decreased  income  of  18  per  cent.  The  Board,  however, 
did  not  contemplate  a  decrease  of  41  per  cent  in  its  income  and  did 
not  provide  for  such  a  contingency,  therefore  we  find  ourselves  with 
an  increased  debt  over  that  of  last  year.  This  is  the  first  time  in 
recent  years  that  we  have  had  a  current  work  deficit  to  add  to  our 
debt. 

The  detailed  figures  are  found  on  page  17,  showing  the  total  cur¬ 
rent  work  deficit  of  1924  to  be  $1,247,831.73. 

SUMMARY 

In  the  interest  of  clearness  let  us  summarize  the  above  points. 
The  following  items  have  been  paid  in  full — i.  Pre-Centenary 
Expense;  2.  The  Columbus  Celebration;  3.  The  Interchurch  Under¬ 
writing;  5.  Benson  Springs  Inn;  6.  Centenary  Cultivation;  7.  Interest. 

Partial  payments  have  been  made  on  the  following  items — 4.  Loss 
in  Exchange ;  8.  War  Emergency ;  9.  Loans  and  Advances. 


The  amounts  remaining  unpaid  are — 

4.  Loss  in  Exchange,  balance  unpaid .  $258,293.33 

8.  War  Emergency  and 

9.  Loans  and  Advances  from  the  General 

Fund,  balance  unpaid .  1,326,584.12 

10.  Current  Work  Deficit,  1924 .  1,247,831.73 


Total  Unpaid . $2,832,709.18 


The  difference  between  this  figure  and  the  total  of  the  debt  of  the 
General  Fund,  $2,972,523.70,  is  $139,814.52.  This  represents  a  net 
balance  between  certain  debit  and  credit  items  in  the  current  working 
accounts,  the  details  of  which  are  found  in  the  general  balance  sheet, 
and  the  undesignated  annuity  balance  sheet. 

9 


THE  CRUX  OF  THE  WHOLE  MATTER 

Let  us  go  back  now  in  our  thinking  to  the  enlarged  program  of 
Foreign  Mission  effort  on  which  the  Board  launched  at  the  beginning 
of  the  Centenary  period  in  order  to  meet  the  purposes  of  the  Cen¬ 
tenary  and  the  expectation  of  the  people  who  subscribed  and  paid 
Centenary  funds. 

The  Board’s  present  financial  condition  arises  from  the  fact 
that  it  provided  the  funds  for  this  enlarged  program  and  at  the 
same  time  attempted  to  remove  these  above  mentioned  obligations 
and  to  do  both  things  on  what  proved  to  be  a  falling  income. 

We  ask  the  Board  now  to  take  these  facts  which  have  appeared 
previously  in  the  official  reports  and  other  documents  of  the  Board, 
and  lay  them  frankly  and  adequately  before  the  Church  until  they 
are  fully  understood. 

THE  BOARD’S  CONSTRUCTIVE  POLICIES 

In  reviewing  the  factors  that  have  brought  the  Board  to  its  pres¬ 
ent  financial  situation,  it  is  only  fair  to  state  that  during  the  Cen¬ 
tenary  period  there  was  inaugurated  a  constructive  program  which 
indicated  wise  and  farsighted  provision  for  the  policies  of  the  Board. 
A  review  of  the  Treasurer’s  statements  shows  that  every  year  conserva¬ 
tive  appropriations  were  made.  The  authorizations  for  the  first  year 
of  the  Centenary  period  on  account  of  War  Emergency  and  Recon¬ 
struction  in  Europe,  already  noted,  were  made  in  that  year  because 
that  was  the  time  when  the  funds  were  needed.  The  Church  had 
given  them  for  that  purpose,  and  the  Church  expected  them  to  be  used 
for  that  purpose.  The  advances  were  made  on  the  theory  that  in  that 
year  at  least  the  increased  contributions  were  due  to  this  special  appeal. 
At  no  time,  however,  except  in  these  particular  advances,  had  ex¬ 
penditures  exceeded  appropriations,  or  appropriations  exceeded  income 
of  the  preceding  year. 

The  high  level  of  disbursements  was  reached  in  1920.  Each 
succeeding  year  has  seen  a  reduction  in  the  disbursements  to  Foreign 
Mission  Fields,  for  all  purposes,  the  reductions  being  almost  entirely 
on  property  items.  In  1921  this  reduction  was  20.23  per  cent;  in 
1922  it  was  8.65  per  cent;  in  1923  it  was  1.96  per  cent;  for  1924  it 
was  5  per  cent,  so  that  last  year  the  disbursements  to  the  field  were 
32.14  per  cent  below  1920,  the  highest  year. 

During  these  years,  in  gifts  designated  for  property  and  in  actual 
appropriations  for  field  projects,  over  two  millions  of  dollars  have  been 
placed  on  the  field  in  addition  to  the  advances  made  to  Europe  for  War 
Emergency  and  Reconstruction,  referred  to  above. 

It  must  be  remembered  too  that  the  Board  met  the  strain  upon  its 
work  by  providing  $915,027.17  loss  in  exchange. 

The  extraordinary  wartime  increases  in  costs  on  every  field  and 
at  home,  amounting  probably  from  seventy-five  to  one  hundred  per 
cent,  were  met  by  the  increased  income  on  account  of  the  Centenary. 

10 


Without  this  additional  income,  our  missionary  forces  could  not  have 
been  maintained  even  at  the  pre-Centenary  level.  Other  Boards, 
British  and  American,  were  obliged  to  withdraw  missionaries  from 
the  field  and  to  discontinue  work. 

From  the  annual  income  every  year  an  amount  was  set  aside  for 
debt.  There  has  been  an  actual  reduction  of  the  debt  of  practically 
one  and  three  quarters  millions  of  dollars  during  this  period. 

Had  the  normal  expectation  of  income  been  realized,  let  us  say 
seventy  or  seventy-^five  per  cent  of  the  total  announced  subscriptions, 
> every  dollar  of  debt  would  by  this  time  have  been  paid,  and  our  pro¬ 
gram  on  the  field  would  have  been  reinforced  and  strengthened. 

The  constructive  policies  of  the  Board,  here  intimated,  would 
have  found  the  Board  at  the  end  of  the  Centenary  period  free  of  debt, 
greatly  strengthened  in  its  equipment  on  every  field,  and  prepared  even 
on  a  materially  reduced  income  to  maintain  the  enlarged  and  ever-en¬ 
larging  Foreign  Missions  program. 


HOW  THE  BOARDS  DEBT  IS  FINANCED 

The  foregoing  statements  deal  with  the  causes  of  the  debt.  The  figures  given 
in  the  summary  on  page  9  do  not  mean  that  we  owe  the  fields  these  fimds.  The 
fields  have  had  the  money  which  has  been  borrowed  to  meet  these  payments. 
The  following  statement  shows  how  these  payments  have  been  financed  and  there¬ 
fore  represent  the  present  debt  of  the  Board.  It  is  a  simplified  statement  of  our 
Resources  and  Liabilities,  prepared  by  the  Treasurer  and  the  Finance  Committee. 
It  is  as  free  as  possible  from  bookkeeping  terminology. 

The  Board  of  Foreign  Missions  owes  the  following: 

I.  AMOUNTS  DUE  OUTSIDE  ORGANIZATIONS  AND  INDIVIDUALS: 


(a)  Notes  due  Banks . $2,150,000.00 

(b)  Notes  due  individuals  and  organizations .  211,968.91 

(c)  Amounts  due  individuals . . .  ^  116,236.04 

Funds  placed  with  the  Board  for  which  no  Notes  have  been  issued. 

n.  NOTES  PAYABLE  TO  ITS  OWN  FUNDS: 

(a)  Permanent  Fund .  232,046 . 12 


This  amount  has  been  borrowed  from  the  Permanent  Fund  for  the'use  of  the 
Current  Account,  Interest  is  paid  on  this  note  annually.  In  1920,  the  Board 
directed  the  discontinuance  of  the  policy  of  borrowing  from  the  Permanent 
and  Annuity  Funds,  which  policy  had  been  in_  effect  for  many  years,  and 
directed  that  these  borrowed  amounts  be  repaid  as  soon  as  possible.  No 
additional  funds  have  been  borrowed  from  these  accounts  since  1920,  and  the 
Annuity  loan  has  all  been  repaid.  While  it  has  not  been  possible,  because  of 
decreased  receipts,  to  repay  the  loan  from  the  Permanent  Fund  in  full,  during 
the  fiscal  year  1920-1921  1310,878.78  was  paid  on  this  loan,  and  in  1923- 
1924  $33,641.78  was  paid  from  Annuity  surplus  by  direction  of  the  Finance 
Committee. 

in.  OUTSTANDING  OBLIGATIONS: 


(a)  Branch  Treasurer’s  Credits .  411,048.67 

(b)  Bills  of  Exchange .  239,065.10 


Funds  of  the  Board  are  remitted  to  the  field  in  one  of  two  ways: 

(a)  Where  Branch  Treasurers  ^  have  been  appointed  for  an  entire  field,  like 
China,  a  monthly  statement  is  sent  out  and  the  Branch  Treasurer  draws 
his  own  checks  for  such  amounts  as  he  may  need  during  the  month,  within 
the  limit  of  credits  indicated  by  these  statements. 

(b)  Where  no  such  Branch  Treasurers  have  been  appointed.  Bills  of  Exchange 
are  sent  from  the  New  York  office,  sufficiently  in  advance  to  reach  the  local 
Mission  Treasurers  in  time  to  enable  them  to  pay  their  current  month’s 
salaries  and  bills. 

As  these  Statements  of  Credit  or  Bills  of  Exchange  are  sent  to  the  field,  they 
are  charged  against  the  appropriations  for  the  year.  When  they  are  returned 
through  the  world’s  banking  channels  and  received  by  a  Bank  in  New  York 
City,  they  are  brought  to  the  Treasurer  of  the  Board  of  Foreign  Missions,  are 
accepted  by  him  and  are  then  charged  to  the  Bank  Account.  No  interest  is 
paid  on  these  outstanding  obligations. 

IV.  AMOUNTS  DUE  OUR  OWN  WORK  AND  WORKERS: 

(a)  Amounts  due  Missionaries .  $25,033.39 

The  fiscal  year  on  the  field  dates  from  January  first  to  December  thirty-first. 

The  fiscal  year  of  the  Board  runs  from  November  first  to  October  thirty-first. 

All  salaries  due  missions  are  for  the  field’s  fiscal  year  and  are  remitted  before 
October  thirty -first  and  charged  against  the  respective  field  budgets,  except 
salaries  of  missionaries  on  furlough  in  the  United  States.  The  November 
and  December  salaries  of  missionaries  at  home  on  furlough  have  been  charged 
to  the  appropriations  to  the  field  and  therefore  represent  a  cash  obligation 
upon  the  part  of  the  Board. 

(b)  Amounts  Subject  to  Call  of  Missions .  192,576.28 

Funds,  mostly  designated,  that  have  been  charged  against  the  appropriations 
but  which  have  not  yet  been  sent  to  the  field.  They  represent  partial  sums 
which  have  been  secured  for  the  erection  of  properties,  purchase  of  land,  etc., 
and  are  held  until  sufficient  amounts  are  available  to  make  it  wise  to  proceed 
with  construction;  or  complete  sums  awaiting  the  purchase  of  sites,  materials, 
etc. 

Included  in  this  total  is  $37,579.79  balance  of  the  Japan  relief  fund  which 
has  not  been  distributed. 


12 


(c)  Designated  Funds .  $344,292.02 

Similar  in  character  to  those  described  under  (b)  but  which  have  not  been 
charged  against  the  appropriations  and  are  held  until  Committee  action  is 
taken. 

(d)  Special  China  Fund — 

1.  Nanking  University  Endowment .  100,000.00 

2.  Invested  for  North  China  Mission .  100,000.00 

3.  North  China  for  Vocational  Training .  60,000.00 

The  generous  response  to  the  appeal  of  1921  for  China  famine  funds  and  the 
unexpected  relief  frorn  famine  craditions  because  of  crop  abundance,  left  in 
the  hands  of  the  National  Famine  Committee  and  the  Board  certain  funds 
which  were  not  needed  for  relief  purposes.  It  has  been  agreed  that  the  Board’s 
funds  should  be  used  for  constructive  measures  which  are  planned  to  prevent 
famine  conditions,  such  as  reforestation,  agricultural  education,  irrigation, 
as  well  as  for  continued  care  of  orphans.  The  Executive  Committee,  in  con¬ 
formity  with  this  principle,  has  set  aside  $100,000  of  this  amount  for  endow¬ 
ment  of  the  Agricultural  Department  of  Nanking  University,  thus  meeting 
an  agreement  made  at  the^  beginning  of  the_  Centenary  for  the  University 
endowment;  $100,000  for  similar  purposes  within  the  bounds  of  the  North 
China  Conference;  and  $60,000  for  vocational  training  in  North  China. 

(e)  Unallocated  Funds .  20,543.10 

Funds  that  have  been  given  to  the  Board  for  various  purposes  and  under 
various  conditions;  amounts  donated  by  individuals,  the  interest  on  which 
is  to  go  to  some  specified  work  during  the  lifetime  of  the  donors,  the  principal 
belonging  to  the  Board  to  be  used  for  current  work  at  the  death  of  the  donors; 
and  other  funds  of  a  similar  character.  These  ftmds  are  all  represented  by 
securities  rather  than  cash. 

(f)  Miscellaneous .  129,796.28 

Funds  similar  to  (e)  above  except  that  they  are  represented  by  cash;  and 
the  accumulation  in  the  fund  for  the  protection  of  our  foreign  mission  prop¬ 
erties  against  loss  by  fire. 

The  Board  of  Foreign  Missions  has  the  following  resources  which  could  be 
used  to  meet  the  above  obligations: 

I.  CASH  IN  THE  BANKS  AND  ON  HAND .  $652,675.98 

II.  DONATIONS  OTHER  THAN  CASH: 

Securities  and  property  which  have  been  received  for  the  general  fund  but 
which  have  not  yet  been  sold; 

(a)  Liberty  Bonds,  par  value .  450.00 

(b)  Stocks  and  other  bonds — ^value  at  which  acquired .  58,219.00 

(c)  Mortgages  and  real  estate .  177,046.73 

(d)  Notes  given  by  individuals .  3,323.00 

III.  ACCOUNTS  RECEIVABLE; 

Amounts  of  a  routine  business  nature,  outstanding  at  the  close  of  the  year, 
all  of  which  will  be  repaid: 

(a)  Travel  advances  pending  settlement .  3,873.50 

(b)  Sundry  Items .  10,470.79 

IV.  ADVANCE  REMITTANCES  TO  THE  MISSIONS .  50,814.48 

On  the  first  of  October  amounts  due  the  missions  for  the  balance  of  the  year 
are  sent  forward.  Any  bills  that  may  be  paid  in  the  United  States  during 
the  month  of  October  are  necessarily  treated  as  an  advance  on  account  of 
the  appropriations  of  the  succeeding  year. 

V.  AHNUITY  SXJEPLUS  IN  PROPERTIES .  196,697.53 

The  amount  made  available  because  of  the  change  of  policy  in  connection 
with  our  undesignated  Annuity  Funds,  but  not  yet  transferred  to  the  general 
treasury. 

VI.  WOMAN’S  FOREIGN  MISSIONARY  SOCIETY,  UNDER¬ 
WRITING  FOR  THE  INTERCHURCH  WORLD  MOVE¬ 
MENT .  206,511.20 

Up  to  October  31,  1923  the  Woman’s  Foreign  Missionary  Society  had  paid 
on  this  account  $52,975.67,  during  the  present  fiscal  year  they  have  paid 
140,513.13. 


13 


SUMMARY 


The  Board  owes: 

I.  AMOUNTS  DUE  OUTSIDE  ORGANIZATIONS  AND  INDIVIDUALS; 

(a)  Notes  due  Banks . $2,150,000.00 

(b)  Notes  due  Individuals  and  Organizations .  211,968.91 

(c)  Amounts  due  Individuals .  116,236.04 

11.  NOTES  PAYABLE  TO  ITS  OWN  FUNDS: 

(a)  Permanent  Fund .  232,046 . 12 

III.  OUTSTANDING  OBLIGATIONS: 

(a)  Branch  Treasurer’s  Credits . 411,048.67 

(b)  Bills  of  Exchange . . .  239,065 . 10 

IV.  AMOUNTS  DUE  OUR  OWN  WORK  AND  WORKERS: 

(a)  Amounts  due  Missionaries .  25,033 . 39 

(b)  Amounts  subject  to  call  of  Missions  (Mostly  Designated) . .  192,576.28 

(c)  Designated  Funds .  344,292.02 

(d)  Special  China  Fund: 

1.  Nanking  University  Endowment .  100,000.00 

2.  Invested  for  North  China  Mission .  100,000.00 

3.  North  China  for  Vocational  Training .  60,000.00 

(e)  Unallocated  Funds .  20,543 . 10 

(f)  Miscellaneous .  129,796.28 


$4,332,605.91 

The  Board  has  the  following  available  Resources: 

I.  CASH  IN  BANKS  AND  ON  HAND .  $652,675.98 

II.  DONATIONS  OTHER  THAN  CASH: 

(a)  Liberty  Bonds,  at  par .  450.00 

(b)  Stocks  and  other  bonds,  value  at  which  acquired .  68,219.00 

(c)  Mortgages  and  Real  Estate .  177,046.73 

(d)  Notes  given  by  Individuals .  3,323.00 

III.  ACCOUNTS  RECEIVABLE: 

(a)  Travel  Advances  pending  Settlement .  3,873 . 50 

(b)  Sundry  Items .  10,470.79 

IV.  ADVANCE  REMITTANCES  TO  THE  MISSIONS .  60,814.48 

V.  ANNUITY  SURPLUS  IN  PROPERTIES .  196,697.53 

VI.  WOMAN’S  FOREIGN  MISSIONARY  SOCIETY  UNDER- 
WRITING  FOR  THE  INTERCHURCH  WORLD  MOVE¬ 
MENT .  206,511.20 


$1,360,082.21 

Total  Debt  General  Fund . $2,972,523.70 

Advances  to  the  Field  from  Permanent  Fund . .  102,739.24 

Advances  to  the  Field  from  Annuity  Fund  less  amount  of  Designated 

Annuities .  26,067 . 33 


Total  Debt . $3,101,330.27 

14 


SUPPLEMENTAL  INFORMATION 

The  following  tables  of  figures,  taken  from  the  Treasurer's  Annual  Report,  are 
printed  with  this  statem§nt  because  of  their  relation  to  the  debt  of  the  Board. 


FOREIGN  EXCHANGE 


October, 

,  1917,  to  October  31,  1924 

EASTERN  ASIA 

Total 

Loss 

Gain 

Net 

Loss  Gain 

China  to  Oct.  31,  1923 . 

“  31,  1924 . 

.  $797,217.55 
.  19,960.12 

Japan  and  Korea . 

$817,177.67 
..  11,880.67 

$26,364.24 

$790,813.43 

11,880.67 

SOUTHERN  ASIA . 

..  168,216.08 

116,810.46 

51,405.62 

SOUTHEASTERN  ASIA . 

..  3,079.11 

3,071.93 

7.18 

CENTRAL  AND  SOUTH  AFRICA  382 . 78 

4,823.05 

*4,440.27 

LATIN  AMERICA . 

..  41,049.33 

33,318.56 

7,730.77 

EUROPE  AND  NORTH  AFRICA  45,578 . 13 

45,578.13 

MISCELLANEOUS . 

..  12,051.64 

12,051.64 

$1,099,415.41 

$184,388.24 

$915,027.17 

Less  Appropriation  for  1919 . 

Less  Appropriation  for  1920 . 

Less  Amount  Applied  from  Board  Obliga¬ 
tions  as  of  Oct.  31,  1922  . 

Less  Amount  Received  for  Board  Debt,  Includ¬ 
ing  Watch  Fund  to  Oct.  31,  1924  . 

$200,209.30 
. .  .15,363.55 

430,339.19 

10,821.80 

656,733.84 

Total  Loss  as  of  Oct.  31,  1924  . . 

$258,293.33 

•Gaia 


LOANS  AND  ADVANCES  TO  THE  MISSION  FIELDS 


General  Permanent  W.  A.  Williams  Annuity 
Eastern  Asia  Fund  Fund  10%  Loan  Fund  Fund 

China .  $25,000.00 

Hinghwa .  $200.00  $14,000.00 

North  China . .  260.00  1,000.00 

West  China .  675.00 


$25,000.00  $1,125.00  $15,000.00 

Japan .  1,800.00 

Korea .  $26,848.09  6,070.00  26,067.33 


Totals,  Eastern  Asia .  $26,848 . 09  $25,000 . 00  $8,995 . 00  $41,067 . 33 

Southern  Asia 

Burma .  $5,000.00 

South  India .  $1 ,000 . 00 


Totals  Southern  Asia. .  $1,000.00  $5,000.00 

Southeastern  Asia 

Malaysia .  $2,000.00  $20,000.00 

N orth  Sumatra .  2 , 250 . 00 


Totals,  Southeastern 

Asia .  $4,250.00  $20,000.00 

Central  and  South  Africa 

Rhodesia .  $1,890.00 

Southeast  Africa .  2,586 .00  $ 1 ,000 . 00 


Totals,  Central  and 

South  Africa .  $4,476.00  $1,000.00 

Latin  America 

Bolivia .  $13,000.00 

Chile .  80,553.08 

Mexico .  $8,800.00 


Totals,  Latin  America.  $93,553.08  $8,800.00 

Europe  and  North  Africa 

Finland .  $56,500.00 

France .  418,254.35 

Germany .  1 10,000 . 00 

Italy .  606,907.00  $77,739.24 

North  Africa .  64,371 . 60 

Sweden .  $4,590.00 

Switzerland .  60,150.00 


Totals,  Europe  and 

North  Africa . $1,206,182.95  $77,739.24  $4,590.00 


GRAND  TOTALS . $1,326,584.12  $102,739.24  $32,111.00  $67,067.33 


General  Fund . $1,326,584.12 

Permanent  Fund . 102,739.24 

W.  A.  Williams  10^  Loan  Fund .  32,111 .00 

Annuity  Fund .  67,067 . 33 


Total  Loans  and  Advances .  $1,528,501.69 

i6 


GENERAL  FUND 

SUMMARY  OF  RECEIPTS  AND  DISBURSEMENTS 
November  i,  1923  to  October  31,  1924 

Receipts 


World  Service,  Direct .  $193,151 . 18 

World  Service,  Designated .  325,762.01 

World  Service,  Treasurer .  1,160,866.62 

Centenary,  Direct .  209,870.81 

Centenary,  Designated .  302,469.99 

Centenary,  Treasurer . .  438,714 . 71 


Our  Share  of  Divisible  Receipts . $2,630,835.32 

World  Service,  Specials .  $34,242.28 

Non-Centenary .  31 ,094 . 73 


Total  Non-divisible  Receipts .  65,337 . 04 

Annuity  Fund,  Undesignated .  $46,501 . 74 

Annuity  Fund,  Designated .  21,980 . 01 

From  Legacies,  Undesignated .  255,603 . 75 

From  Legacies,  Designated .  18,598 . 98 

Interest,  Permanent  Fund,  Undesignated .  10,813 . 83 

Interest,  Permanent  Fund,  Designated .  32,590 . 98 

Miscellaneous .  70,701 . 05 


Total  Receipts  from  Other  Sources .  456,790 . 34 


Total . $3,152,962.70 

Total  Receipts  for  1923 . $5,350,473 . 52 

Decrease  for  this  year .  2, 197,510 . 82 


Disbursements 


Board’s  Obligations,  Principal  and  Interest . . 

General  Expense . 

Indirect  Appropriations . 

Special  Personnel  Preparation  Fund . 

Direct  Appropriations . 

Non-Recurring  Items . 

1.  Designated  Gifts  Adjustment  Fund. . . 

2,  Field  Projects . 

Malaysia  Educational  Debt . 

Balboa  Union  Church,  Panama . 

Conditional  Appropriation  for  Field  Projects 

Total . 


(Schedule  A) . 

(Schedule  B) . 

(Schedule  C) . 

(Schedule  D) . 

(Schedule  E) . 

(Schedule  F) 

$140,965.84 

278,461.46 

210,752.14 

45,000.00 

3,140,000.00 

440,853.37 

...  $124,761.62 

15,000.00 

5,000.00 

144,761.62 

(Schedule  G) . 

*4,400,794.43 

Total  Disbursements . $4,400,794.43 

Total  Receipts .  3,152,962.70 


Excess  of  Expenditures . $1,247,831.73 


17 


TOTAL  DISBURSEMENTS  FOR  SEVEN  YEARS 

Special  attention  is  invited  to  the  following  table  of  disbursements 
for  the  past  seven  years.  The  figures  for  1918  are  given  for  compara¬ 
tive  purposes  and  the  figures  for  the  other  six  years  are  given  because 
the  Centenary  began  June  i,  1919,  and  ended  May  31,  1924.  These 
figures,  therefore,  present  the  total  of  the  Centenary  disbursements 
with  fractional  years  added. 

The  Treasurer  wishes  to  express  one  or  two  words  of  caution. 
No  one  should  add  all  the  figures  which  appear  under  “Board’s  Obli¬ 
gations”  and  say  that  the  result  is  the  total  of  the  Board’s  debt,  because 
most  of  the  present  obligations  of  the  Board  were  contracted  after 
some  of  these  items  had  been  paid.  Our  share  of  the  cost  of  the 
Centenary  campaign,  that  is,  the  cost  of  Centenary  operations  up  to 
the  date  of  the  taking  of  the  subscriptions,  was  all  paid  from  the  first 
Centenary  receipts  and  on  October  31,  1919,  were  no  longer  a  part  of 
the  Board’s  debt.  While  some  of  the  advances  to  the  fields,  as  indi¬ 
cated  in  another  paragraph,  have  been  of  long  standing,  most  of  the 
advances  have  been  made  since  1919,  and  all  the  present  unpaid  loss  in 
exchange  has  been  contracted  since  1921. 

Again  it  should  be  understood  that  not  all  of  the  Board’s  obliga¬ 
tions  have  been  created  on  account  of  home  base  activities.  Loss 
in  exchange  is  clearly  a  field  item  and  would  be  included  under  the 
heading,  “Disbursements  to  the  Fields,”  if  it  were  not  for  the  fact 
that  this  loss  could  not  be  cared  for  under  the  appropriations,  but  had 
to  be  carried  in  addition,  thus  causing  a  part  of  the  debt.  Further¬ 
more  the  cost  of  interest  has  not  been  entirely  on  account  of  the 
Board’s  indebtedness,  but  a  goodly  proportion  of  it  is  due  to  the 
delayed  remittances  from  the  churches.  If  the  Board  could  receive 
one-twelfth  of  its  income  monthly  its  interest  charges  would  be  greatly 
reduced. 

The  figures  under  the  heading,  “Disbursements  to  the  Fields,” 
represent  the  total  amount  which  has  been  expended  on  account  of  the 
field  work  both  for  recurring  and  non-recurring  objects,  excepting  loss 
in  exchange,  as  indicated  above.  The  amounts  paid  in  loss  in  ex¬ 
change  in  1919,  1920  and  1922  should  be  added  to  the  figures  under 
this  heading  in  order  to  secure  a  complete  statement  of  the  amount 
disbursed  for  the  field. 

Special  Personnel  Preparation  Fund  is  the  fund  that  was  set 
aside  by  the  Board  for  the  preparation  of  missionaries  for  the  field 
and  disbursed  to  the  theological  seminaries  to  be  used  for  that  par¬ 
ticular  purpose. 


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19 


If  You  Want  a  Thing  Well  Done 

Do  It  KoHrself! 

Would  you  let  strangers  run  your  business  ? 
Would  you  let  strangers  invest  your  money  ? 
Would  you  let  strangers  control  your  home  ? 

NO 

Why  let  strangers  administer  your  estate? 
Why  let  strangers  provide  for  your  family  ? 
Why  let  strangers  pay  your  benevolences? 

Buy  Life  Annuity 
Agreements 

They  make  you  your  own  executor 

They  guarantee  a  regular  income  to  your  family 

They  insure  your  money  being  devoted  to  missions 

Full  particulars  will  be  sent  you  immediately  if  you  address: 

Morris  W.  Ehnes,  Treasurer  of  the  Board  of 
Foreign  Missions  of  the  Methodist  Episcopal 
Church,  150  Fifth  Avenue,  New  York  City. 


